Dear Shareholders,
It is with great satisfaction that I present your Company's performance
for the fiscal year 2024-25. Our sustained success stems from a clear threepronged growth
approach: anchoring on our strong core businesses (TI-1), venturing into new frontiers
such as Electric Vehicles (TI-2), and leveraging inorganic growth through strategic
acquisitions (TI-3). This integrated strategy has enabled us to continually enhance
stakeholder value. Our commitment endures to both bolster our existing strengths and
actively forge new paths for advancement.
In FY 2024-25, India's economic landscape continues to provide a mix of
opportunities and challenges. Key sectors relevant to TII, such as automobiles,
construction and engineering, are demonstrating varied performance. The Government's
ongoing focus on infrastructure development and Production Linked Incentive (PLI) schemes
remains crucial in driving these sectors. TII is well-positioned to capitalise on these
trends. Our four key performance metrics, Revenue Growth, Profitability, Return on
Invested Capital and Free Cash Flow, continue to guide our strategic direction.
The Indian automobile sector is experiencing growth, driven by
increasing demand across segments. The EV segment, particularly in two-wheeler and
three-wheeler categories, continues to show significant promise, aligning with our
strategic investments in TI Clean Mobility Private Limited (TICMPL). We are focusing on
vehicle integration, capacity building and enhancing software capabilities within TICMPL.
Montra Electric three-wheelers are performing strongly in Southern markets and expanding
into Northern regions. EV Heavy Commercial trucks are progressing through their early
sales stages, while other EV products like tractors and small commercial vehicles have
been launched with positive market reception and a strong pipeline of pre-orders.
The Railways segment presents substantial longterm potential,
especially in the Vande Bharat fleet expansion programme and we are actively aligning our
Metal Formed Products business to capitalise on upcoming opportunities. In the bicycle
market, our Mobility Business is navigating challenges related to raw material costs and
competition from the unorganised sector. We are addressing evolving consumer preferences
by launching advanced models and strategically targeting the growing e-bicycle segment
apart from focussing on export opportunities.
Our venture into Contract Development and Manufacturing Operations
(CDMO) through 3xper Innoventure Limited (3xper) is showing promise. 3xper offers a
comprehensive suite of manufacturing services, ranging from small-scale material
generation at the lab scale to kilo lab, GMP pilot, semi-commercial and commercial-scale
manufacturing, catering to our customers' clinical phase and commercial requirements. We
are making good progress with our expansion plans in this area. TI Medical Private Limited
is showing positive business prospects following our acquisition, with enhanced
capabilities and new product introductions apart from capacity expansions.
CG Power and Industrial Solutions (CG Power) made its foundational
entry into the semiconductor industry through a significant investment in a
state-of-the-art Outsourced Semiconductor Assembly and Testing (OSAT) facility in Sanand,
Gujarat. This facility, a joint venture via CG Semi Private Limited with Renesas
Electronics America Inc. and Stars Microelectronics (Thailand), is poised to manufacture a
wide range of semiconductor packages, targeting critical sectors such as automotive,
Internet of Things (loT), industrial, infrastructure and 5G technologies, thereby
significantly contributing to India's growing semiconductor ecosystem. Building on this
initial strategic move, CG Power further expanded its presence by establishing Axiro
Semiconductor Private Limited, which formalised an agreement to acquire the Radio
Frequency (RF) components business from Renesas Electronics America Inc. and affiliated
entities.
TII is demonstrating a strong commitment to Environmental, Social and
Governance (ESG) principles. The Company is rapidly advancing towards green manufacturing,
with 60% of its power consumption derived from renewable sources. Beyond this significant
stride, TII is actively engaged in other initiatives, including extensive tree plantation
projects, aimed at increasing carbon sequestration and promoting ecological balance within
the communities where we are present.
I extend my heartfelt gratitude to Vellayan Subbiah for his visionary
leadership and strategic initiatives, propelling TII towards continued growth. I also
commend Mukesh Ahuja for his leadership as Managing Director.
I am grateful to the Members of the Board for their unwavering support.
On behalf of the Company, I thank Ms. Sasikala Varadachari for her contributions and
welcome Ms. Shelina Pranav Parikh to the Board.
I extend my sincere thanks to our customers, bankers and suppliers for
their steadfast support and express my appreciation to our shareholders for their
continued trust.
As TII undergoes this significant growth period, we will continue to
leverage our core competencies to embrace challenges, unlock our full potential and strive
to be a globally admired Company.
| Yours Sincerely, |
| M A M Arunachalam |